John Lewis profits surge 74%

EXCEPTIONAL credits, including pounds 3m of rate rebates, helped John Lewis Partnership to increase pre-tax profits 74.4 per cent to pounds 28.6m in the six months to 30 July, writes Alison Eadie.

The department store and Waitrose supermarket group said the underlying profits increase was 33 per cent. Rate rebates last year were pounds 10m, all falling in the second half. There are more rate appeals in process, so further rebates are possible.

Stuart Hampson, chairman, warned the partners to 'keep their feet firmly on the ground despite the eye- catching percentage increase in profits'. The partnership bonus - 10 per cent last year - is based on a full year's trading and profits are heavily skewed towards the second half.

Department store sales rose 6.5 per cent with barely any inflation. Best performers were beds, bedding and kitchens, where sales were 16 per cent higher, indicating some pick-up in the housing market and postponed replacement buying, the group said.

A strong performance in the final month of the half year pushed Waitrose's sales 3.5 per cent higher, after price inflation of 0.5 per cent.